My Story
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A chain of events that lead to the Banking Royal Commission: Radio Interview 2018: LINK
in 2011 when we encountered dishonesty with the Bankwest appointed managers of our business we took it to the media and a front page story titled "BastardWest" was published in the Fremantle Herald. That article started an avalanche of calls from others in similar situations with Bankwest and other banks and subsequent stories were published in other newspapers both here in Western Australia and nationally. I was asked to appear on television and radio segments explaining what we encountered. The media outlets involved often told us that both Bankwest and the managers they appointed threatened them with legal action if the articles were published. We were telling the truth and had documents to prove it... you can't be sued for defamation if you are telling the truth so the threats were idle. Commonwealth Banks Euan Robertson and Challengers Brian Benari have both had lawyers issue letters threatening legal action unless I stop telling this story and Challenger applied to an international court to have a website address linked to this information removed but their appeal was dismissed.
As a result of the media publicity I was asked by others affected by Bankwest to help. My lawyers told me it was impossible to win against a Bank as they are so powerful and will use all their huge resources against you. Bankwest to this day refuse to authorize the release of legal documents that my company paid over $400,000 for. They just stone wall you knowing the regulators are powerless. The lawyers told me that the system is broken and that Bank appointed managers are part of, and I quote word for word: "The most corrupt industry in town".
I had previously been an active member of the Liberal party for over 10 years so I decided to contact Liberal party politicians for help. A group of about 20 others with similar issues with Bankwest also started to lobby politicians for action to clean up this industry and to try to get compensation. As a result of our lobbying and with the help of politicians from Nationals, Labor and the Greens as well we eventually got approved a Senate Inquiry into the Banking sector in 2012. (link to video extracts of my evidence at the top of this page).
The 2012 Senate Inquiry concluded there were serious problems and a subsequent Senate Inquiry was ordered into the effectiveness of the regular ASIC. That inquiry was held in 2014.
After the ASIC Inquiry I was approached by the Western Australian Rural Action Movement (RAM) to speak at meetings of farmers who had experienced similar dishonesty at the hands of the Banks. I gave addresses to farmers meetings in the wheat-belt and in Carnarvon and met many more with stories like mine. It was after my address to a farmer group at Carnarvon that a lady came up to me to tell her story, she had small bandages on her arms and was very pale. I asked if she was OK and she told me she had just been discharged from hospital. She had been admitted in a state of stress as her husband had just committed suicide over what the Bank was doing to their farming business!! She went on to tell me she had two small children that she had left with a friend to allow her to come to our meeting and that the children were crying when she left thinking she might commit suicide as well. From what she told me they had been very unfairly treated by the Bank involved. I left that meeting thinking this issue is not just about our small group and me getting compensation... That meeting motivated me to do as much as I possibly could to change the system.
Our group continued to lobby for change and we eventually got a Parliamentary Joint Committee (PJC) Inquiry into Banking in 2015-2016. The inquiry was lead by Liberal member of parliament Philip Ruddock. Nationals Senator John Williams was also involved. I had met Williams at the 2012 Senate Inquiry and he was on to it having received hundreds of similar stories. The organizers of that Inquiry were looking for farmers affected by other Banks. I called the president of the WA Rural Action Movement and he gave me some names. I called one of them, a Mr Rodney Culleton, and arranged to meet him. He told me his story with ANZ managers and I said he should write a submission and appear at the committee hearings.
The 2015-16 PJC Inquiry hearings were held in Sydney and Rodney Culleton attended and gave evidence. At lunch break I got the lift down for a coffee and a red headed lady got in and stood next t me. I asked if she was a farmer and where she was from. She said she was just there to observe, so we struck up a conversation. After the hearings I asked her to join a group of us for a drink to discuss the day. That lady was PAULINE HANSON. Pauline told me she was re- entering politics and believed she would do well at the upcoming federal elections. She said she couldn't believe the stories she was hearing and if elected she would try to do something about it. Rodney Culleton also Met Pauline Hanson.
As a result of these meetings Rod Culleton stood as a Senate candidate for One Nation in WA and got in. Rod asked me to come and work with him on the banking issues which I then did. It was a paid position as an adviser to a Senator, a position where I could really start to make a difference. One Nation held the balance of power on the cross-bench and were in a very powerful position. Turnbull was trying to get legislation through and Culleton and Pauline negotiated the setting up of a One Nation chaired Senate Inquiry into Rural Lending in 2016-17.
Pauline Hanson and the Nationals were actually doing something to clean up the Banks. I continued to appeal to key Liberals for help but they refused. In protest I helped convince Pauline Hanson to run a West Australian election campaign in 2017, I ran the electoral office in Perth. The Liberals faced one of their biggest ever wipe-outs and One Nation got three upper house members elected.
Culleton lost his position as Senator due to bankruptcy in early 2017 and I subsequently worked for his successor Senator Peter Georgiou. I finally was working "on the inside" and had access to other politicians and the resources of Parliament to help expose what was happening.
Commonwealth Bank had a full-time lobbyist Euan Robertson working at Parliament House. At one briefing Euan was trying to lobby for the Banks, I spoke up and asked what about all the misconduct within the Banks. Euan then told the meeting that it was a conflict of interest me working as an adviser and then went on to try to stare me down !! I did not blink, and he eventually had to look away. Other Senators noticed and came up to me after the meeting saying don't be bullied by this thug and to keep up the good work. Robertson is one of the few that are aware of whats gone on but tries to cover it up, in my opinion he should be in jail.
In 2017 as a result of continuing stories of Bank misconduct and of the evidence given at all these inquiries pressure was building to Turnbull to hold a Banking Royal Commission, but he just refused. The cross-bench and Labor were now in favor but Turnbull and key Senators such as Cormann and Cash just wouldn't budge. They said they had everything under control and that the regulators were doing a good job, which was far from the truth. Meanwhile the One Nation lead inquiry into Rural Lending was throwing up more horror stories for all to hear. As well as One Nation Senators, other parties had politicians at the hearings and Nationals Senators Williams and O'Sullivan became strong supporters of a Bank Royal Commission.
Polling of the Liberal party continued to decline, Turnbull had become the captain of a sinking ship but still refused to budge on the Royal Commission. It's my belief that the Banks are such big doners to the Liberals that they didn't want to act against the Banks. At a meeting Senator Georgiou and I had with the minister for small business, Liberal Kelly O'Dwyer, over increasing compensation to bank customers in cases of misconduct: O'Dwyer told us both "the Banks would never agree to that". But it's the Government who make the rules not the banks! Clearly O'Dwyer, an ex-Bank employee, was in the pocket of the Banks. I found out later that one of the big four Banks had made very large donations at a Liberal fund raising function hosted by O'Dwyer.
(Footnote 18 Jan 2019 O'Dwyer resigned, I believe she saw the writing on the wall for the Liberals, they are better off without her).
By late 2017 it was crystal clear a Royal Commission was needed as a result of further Bank scandals and the concluding Senate Inquiry.
In the last week of November 2017 I started coming into Parliament House early and distributing to politicians Bankwests "Sink Boots into Customer" memo (see another page of this website) along with information on why a Royal Commission was needed. DOC56 I'm not that religious but early one morning that week I met a clergyman in the corridors of Parliament House and I asked him if he was going to a prayer service there... He invited me to attend so I did. There were some key politicians at the prayer meeting and I felt a bit out of place, but I was welcomed, I was asked to do the reading and join in the prayers. After the meeting the politicians told the minister they were saddened by the state of politics in Australia and at their own parties, they talked about the need for a Banking Royal Commission. This was a Eureka moment for me. I can't say what some told me over a coffee afterwards but the Royal Commission was announced the next day!!!
Turnbull had to do it , he would have lost control of the party room otherwise. Turnbull has since been dumped but the Liberals still just don't get it over matters like this. Nearly everyone else has called for the Banking Royal Commissions terms of reference to be extended to include the Banks appointed receiver managers, one of the greatest areas of misconduct. The Liberals could do this with the stroke of a pen, but they refuse. Labor have done much better and have said that they will force Banks to compensate all wronged customers if elected. News release at: LINK
This story isn't over yet! Liberals now face one of the biggest wipe-outs in Australian history unless they change. I hope they do but doubt they will as they are so beholden to the Banks. If they don't change then Labor deserve to win as they have committed to continue to clean up the misconduct.
My work with One Nation on helping to get the Banking Royal Commission is done. I resigned as an adviser in June 2018 but I am still working with others to bring about change. Everyone told us when we started that we would never get a Banking Royal Commission... But we did!!
Below is some more detailed information on my case from my 2012 Senate Inquiry submission:
Bankwest managers caused losses LINK
I have read many of the submissions to this Inquiry and my case is one of the many involving Bankwest. My motivation to appear before this committee is not just in my interests but in the interests of the many hundreds of Australian families and businesses that have been affected by Bankwests changes in management in the last few years. I have lodged two submissions to this Inquiry being numbers 111 & 124.
If anyone had told me my story with Bankwest several years ago I would not have believed them, the same goes for the bulk of the Bankwest submissions in this Inquiry. I thought this sort of thing could not happen in Australia. I thought we had an honest and well-regulated banking system with checks and balances to keep it honest and regulatory bodies to enforce compliance with the laws. It appears this is not the case and things need fixing and people need to be brought to account.
I can provide documents as proof if required. DOC = document available (click on link to access).
I am married with 4 children and am a self-employed businessman, being a Registered Builder and Hotelier in Western Australia. My business was successful, profitable, had won a number of awards and employed a staff of over 50 plus subcontractors.
My wife and I had built the business up from nothing in 1989 to a successful building and hotel business in 2011. 22 years of hard work and savings. We owned a 50% share in two hotels in WA. The other 50% was owned by a business partner who is a Banker and who holds a senior and highly paid position at another financial institution. Our profitable company rebuilt the Lighthouse Beach Resort in Bunbury which became one of the most popular Hotels in the town.
We were also rebuilding the 120 year old National Hotel in Fremantle & won a heritage award for it.
Our profits were at record levels just before Bankwest receivers were appointed in 2011. We had record forward bookings and the profits in the June 2011 quarter were the best on record, turnover for the year was the best ever and profits were trending upwards. Bankwest dealings were good until 2010. We were told we were model customers. All interest was paid over 8 an year period from 2003 to 2010.
Ian Caulfield, the Chief Executive of Bankwest Business personally inspected the National Hotel in 2010 and personally met me and discussed our business. Bankwest managers and staff were honest and professional. Our problems arose due to dishonest conduct by a small group within Bankwest and their appointed receiver managers who are nothing but white collar thugs.
SUMMARY OF EVENTS:
2007
13th June. Bankwest valuation Lighthouse Hotel $20,000,000 DOC27
2009
24th November. Bankwest valuation $14,750,000 (reduced due to impact of GFC but we are still within lending ratios as we were lowly geared before) DOC28
2010
24th March. Newspaper Article saying Bankwest tightens lending practices. DOC1
19th April. Bankwest advise us new valuations are required at OUR cost being $9,500 (Just FIVE months after the previous valuations). And appoint a different valuer to revalue again.
29th June. Bankwest advise us the new valuation dated 17th June is $11,405,000 being a drop in value of $3,345,000 or 22%. DOC29 In this valuation our buildings valued previously at over $16m were put down at just $3.4m being an 80% reduction. (photos of buildings available) DOC30. This is despite the buildings having had over $4m spent on refurbishments alone in the few years preceding.
The Lighthouse is a 70 room Hotel with two bars, restaurant, several function rooms, indoor heated pool and a large ballroom that we were in the process of rebuilding. It is one of the largest buildings in the city and very well known. To depreciate a large recently refurbished hotel by this amount was extraordinary. Another motel of poorer quality and location was noted in the valuation as comparison to the Lighthouse for valuation purposes. The Lighthouse was given a LOWER valuation on room basis than the inferior property. This was being extremely conservative to the point of negligent. DOC31
29th June. I wrote to Bankwest saying I believe valuation, extremely pessimistic and flawed in its logic with supporting documents to support this. DOC32
1st July. The valuer says he believes his valuation including an 80% discount on buildings that have been refurbished is reasonable. Bankwest refused to disclose valuation instruction. Why did they do that ?
10th August. Bankwest advise us interest rate margins will DOUBLE from 1.25% to 3.07% DOC33
Spring. We decided to sell properties or refinance as it was getting too hard with Bankwest.
2011
27th January. In further discussions with Bankwest they said they will not budge on higher interest rate margin now being charged. They said they had no room to negotiate.
1st February. We got a purchase offer for the Lighthouse at $14m being $2,590,000 or 22% above the Bankwest Valuation which indicates how low the Bankwest Valuation was DOC34 Our Business partner, Brian Benari the CEO of Challenger a Banker himself, decides to match that offer and agrees to buy it on terms matching the other offer for $14m and another valuer values the property at that.
31st March. Bankwest advise us if not get their money back by end May it will get ugly.
6th May. Bankwest advise if arrangements are not made for full repayment of all debt by 31st May default rates of interest at 18% will apply.
23rd May. Our business partner advises he has changed plans to buy despite giving several assurances to Bankwest and others that he would, so I advise Bankwest we will place the property on the market again and sell assets to repay or refinance their debt. Bankwest advises me our business will be placed in CAMS (Credit and asset management). Even though we have the ability to meet all interest payments going forward.
27th May. Bankwest advise that they want all their money back in one lot, no partial repayments!! This made it really hard as the debts were secured over 4 separate properties, I suggested that properties were sold and debt repaid as individual sales made but this proposal was rejected.
30th May. I advise Bankwest that our profits are at record levels DOC54 and request that the 18% is not charged. DOC55
1st June. Bankwest advise me interest charged will rise to 10.81% (from 7.87% DOC35 ) being a 2.94% increase or 37% increase in monthly payments. How can any business stand this!!
22nd June. Bankwest Issued us a Deed of Forbearance: DOC2 Included in the Deed were demands for:
The Deed was onerous with one sided clauses. Our advisers recommend that we don’t sign it and we didn't. How many others have been forcibly silenced by Bankwest?
Brian Benari then offered $13.3m being $700,000 less than what he offered just a few months earlier.
22nd June. Bankwest advise us interest rates DOUBLE AGAIN i.e. Quadruple within 6 months to BBSY + 6% DOC36
12th July. Bankwest rejects the $13.3m offer. They want all their money secured over four separate properties back in one lot and no less. We are not allowed to sell the properties separately to discharge the debt in smaller amounts as I had requested. This turns out to be a complete disaster as follows.
18th July. Bankwest appoints Mark Englebert of Taylor Woodings as Receiver Manager.
They charge up to $525 per hour for an accountant and they had three and sometimes four accountants now running the business taking my place. They told me not to work in my business. I complied and left them too it thinking they would do the right thing.
They told me not to work in another business in the town or use my subcontractors there as that would be a conflict of interest with my existing business which they now ran and that they were now being paid from. They told my staff not to “engage” with me and I was told not to talk to the media. Taylor Woodings refused to tell me what was going on in any way. All my profits were taken, I was not able to get any information on what they were doing or how the business was performing… a cone of silence went over the business.
They stopped paying me wages as business owner and manager, they didn’t acknowledge that I and my wife were employees even though we had been for 20 years and had been on payroll and with a family of 4 dependents. I was in an impossible situation with no money, no job, and being told to shut up and keep it a secret. I had a family of four dependent children, I was not allowed to work in the same town as a builder as I was told not to use my independent subcontractors and couldn't get social security because of our assets, which were now all frozen by Bankwest. The income from my business could have paid all Bankwest interest had they not done this.
They told me not to ask questions as doing so adds to the costs of the receivership. My family and some of our staff were in tears of what was happening, it was terrible, these are licensed suited thieves who hijacked the business.
The following three incidents show what Taylor Woodings were like:
12th September. Taylor Woodings advised me that I couldn't conduct a site inspection of the hotel with a prospective purchaser without their consent. Why as this is ridiculous?? DOC3
15th October. A staff member called me to advise that young children were unsupervised in the hotel swimming pool. This is a safety issue. I tried to contact Taylor Woodings but couldn't as it was on the weekend and they wouldn't answer their mobile phones so I phoned hotel to stop this. DOC37
20th October. Taylor Woodings instructed an electrician who had worked for me to do electrical work involving drilling asbestos in a confined space. Another subcontractor told me this was happening. I called Taylor Woodings but I couldn't get through. I then called the electrician to tell him the material he was drilling was asbestos and to stop drilling it as breathing asbestos dust is life threatening. Taylor Woodings then instructed me not to interfere. DOC38
A few weeks later I was issued by Taylor Woodings a threat of a restraining order if I interfered with the business! The two above times are the only times I had intervened since their appointment. They told me I was not even allowed on the property. It’s a Hotel and open to the public but not for me because of Bankwest.
After 10 weeks and intervention from my lawyers Taylor Woodings finally changed their mind and agreed that my wife and I were employees after all. They then sent us termination letters with no reason given. We still had not received any pay or entitlements. We got lawyers further involved and letters were written, still no response.
We took it to Fair Work Australia and the Fair Work Ombudsman. Myself and my wife against two receivers and three lawyers all on $500 to $600 an hour . (5x 550 = $2,750 per hour) which our company pays for against me and my wife!!
1st November. Taylor Woodings lodged forms at Fair Work Australia justifying our termination and their appointment. The information Taylor Woodings gave contained statements that were blatant lies DOC39
What can you do when a Bankwest appointed Administrator fabricates evidence to justify terminating your employment to justify installing their employees at a cost that we find later is $110,000 a month? I believe this is outrageous and borders on criminal behaviour.
11th November. I wrote to Bankwest protesting and outlining the lies and requesting a meeting and answers.
NOTE: No answers to the allegations were ever given. They cannot support the SERIOUS FALSE and MISLEADING ALLEGATIONS made. DOC4
14th November. I sent a letter to Taylor Woodings saying sacking me and my wife for no reason is indefensible.
21 November. ASIC advise me they will take no action on misconduct by Taylor Woodings but suggest I contact my legal adviser and use civil remedies. DOC5
30th November. Taylor Woodings offer a payout if I shut up over what’s happened and sign a Deed including a confidentiality agreement. By this time we were desperate, I had a family of four dependent children, we couldn’t get money from anywhere so we signed as we had no other option.
20th December. Taylor Woodings paid us out $18,300 just before Christmas. Even that was drawn out with them initially refusing to pay it all until we got lawyers involved at further cost to ourselves.
2012
2nd February. ASIC Vaughan Groves advises is that our concerns are outside the ASIC charter but advises us there are legal avenues against Bankwest and Taylor Woodings.
14th February. Federal Labor Member for Fremantle wrote directly to Bankwest requesting transparency. This request was denied!! DOC6
23rd March. Our advisers inform us that the conduct of the Banker involved, Brian Benari of Challenger, is fraudulent, negligent, misleading and deceptive and in breach of fiduciary obligation. This is raised with Bankwest, Taylor Woodings but this advice was ignored. This conduct is attributed to a very senior banker but no action was being taken. DOC26
28th March. Our Lawyers request release of information from Taylor Woodings on Brian Benari's dealings with the receivers. DOC26.1 This request has been denied which itself raises serious concerns of the legality of their actions. Our lawyers also write to the lawyers Bankwest are now using on their side against me being the same lawyers the Bankwest receiver / managers are using "on my behalf" and who I am paying for (which is in itself a conflict of interest). They advise Bankwest of concerns over flaws in the receivership and of mismanagement of the process. DOC26.2
Numerous letters were written requesting information on the management of my company and the receivership, almost all were denied with no reason. They told me my questions are adding to cost of the receivership!!!
Sales Process LIGHTHOUSE BEACH RESORT BUNBURY
Six weeks after Taylor Woodings were appointed the Lighthouse went on the market.
No price. Expressions of interest only.
We offered $ 13.3m subject to sale as a first bid.
I was told they would not accept a subject sale.
I approached several others to form a syndicate to buy it and one group were preparing to put an offer in for $14m but were told not to by the selling agents. (NOTE This is now in 2018-19 the subject of an inquiry by the Australian Small Business and Family Enterprise Ombudsman) LINK
I requested to be told what was going on and had it sold or not?
The selling agents said Taylor Woodings had instructed them it had sold but in a meeting I then requested with Bankwest Taylor Woodings admitted it hadn’t actually sold! So because of my inquiries it eventually went back on the market by which time the syndicate that was interested had brought elsewhere. I was then told any offer I made had to be higher than $12m to be in the running.
My finance broker requested up to date financials to assist with funding. This request was refused by Taylor Woodings. WHY !!
Meanwhile in the mist of all this secrecy and deception another shareholder in the property and Banker Brian Benari negotiated with Taylor Woodings without our knowledge to buy it for $9.5m !! ($4.5m down from his $14m offer just a few months before) We have been advised this conduct is illegal.
I found out afterwards that while this was happening Challenger Financial, with CEO Benari, was awarding more receivership work to Taylor Woodings. This perhaps explains why they were dealing with Benari while at the same time keeping me in the dark over their conduct.
NATIONAL HOTEL FREMANTLE DOC7 PHOTO
Valued at $7m
The selling agents had an interested party in half share at $3.5m 1st February 2011.
Agents advised us it was a “complete and utter waste of time to sell without cost to complete calculated”
Taylor Woodings sacked me and decided do it that themselves. They spent 20 weeks saying they were getting a costs to complete estimate, a job I could have done if I'd been allowed access to the documents they took. I then found out they had done nothing, just wasted 20 weeks. They then put it on the market anyway just before Christmas and advertised it over just 3 weeks with no price. They ignored the advice from the selling agents and Bankwest was fully aware of this but just sat and watched.
We placed an offer subject to sale.
Selling agents tell me my offer needs to be over $5m cash!!
They will not accept a subject sale offer.
I had a JV partner who is interested and keen.
I repeatedly ask the agents, our business partner, Bankwest and Taylor Woodings what’s happening but they refuse to tell us. Our professional advisers are involved and they can’t believe how corrupt and underhanded it all seems.
I find out later it’s sold for $3.6m, about half its value, to foreign Interests, but apparently not unconditionally. Our lawyers further get involved and we offer $3.8m to try to salvage it which they refuse and let it go… A complete commercial disaster.
Bankwest managers have undersold two assets and charged us over $1.3m in their fees (not including sales agents fees) for doing so.
17th April. Legal pressure on Taylor Woodings. We demand documents taken by Taylor Woodings without legal jurisdiction returned (Which may be interpreted by some as another word for STOLEN but I have been threatened by Taylor Woodings with legal action if I discuss this). They eventually return seven archive boxes of documents they had no right to take including documents from our personal superannuation.
18th April. Taylor Woodings threatens to sue us if we disclose their activities to the media.
10th May. Bankwest advise us that Taylor Woodings do not act for Bankwest and that any complaints over their behaviour should be directed to Taylor Woodings. Bankwest are now charging us 18.81% on their fees now being charged to a new overdraft account DOC9 and they are now calling on us for the shortfall. It’s almost criminal. The interest rate was 7.87% previously. DOC8
8th June. For the first time since their appointment, Taylor Woodings advises us of their costs which total $1,055,682 for 9 1/2 months work. This works out at $111,000 a month or $5,500 a day!! Their fees EXCEED the income that the company has made. Just unbelievable and cannot be justified. DOC10
9th June. I request a justification of the fees.
11th June Bankwests appointed Taylor Woodings advise their fees and costs, which our company paid, (totalling $1,055,682 for 91/2 months) “are subject to legal and professional privilege and on that basis are documents to which we are not entitled” DOC11
14th June. Financial Ombudsman Service advises us they cannot act for reasons given in my submission 124 being:
I have asked Bankwest and Taylor Woodings to respond to my submissions to this inquiry but they have not done so to date.
4.35pm YESTERDAY (the day before I gave this submission at the Senate Inquiry in Canberra) Taylor Woodings advise I should seek advice before releasing some of the information above as they believe it should be kept confidential Document available as proof DOC20
SUMMARY:
Bankwest artificially devalued our business, doubled then quadrupled their interest rate margins.
Then demanded all their money back in one sum making sales or refinancing virtually impossible.
We were forced to sell and the receivers gouged the business lined their pockets. It’s a disgrace.
Our losses due to the actions of Taylor Woodings and Bankwest are now over $10m.
Bankwest and Taylor Woodings still REFUSE to disclose certain information requested WHY??
Regulatory Agencies ASIC, FOS are powerless to act.
Appeals from us, our lawyers and politicians for transparency have been ignored.
Where can we turn? Banking seems unregulated and out of control.
5th August Bankwest submission to this Inquiry (number 80) contains a number of statements that are not true DOC
My case is FAR from Isolated. A formal INDEPENDENT (Non-Bank based) investigation or ROYAL COMMISSION is needed.
Where there is smoke there is fire.
Why did Bankwest try to stop this Inquiry?
Why are they on the defensive and trying to stop further investigations now??
Other issues
1) Massive transfer of wealth from a productive entrepreneur to accountants who act in an unregulated and seemingly corrupt environment.
2) In my opinion it’s grossly unfair and verges on corrupt criminal behavior by various parties involved.
3) I am just one of hundreds in similar position according to government reports.
4) Bankwest book clearing. See Newspaper Article 24th March 2010. DOC1. I have been told Bankwest was insolvent and that RBA bailed it out. We did not know this at time and couldn’t understand why they had become extraordinarily hard to deal with.
5) At a meeting with an employee from Bankwest Treasury I said it must be interesting working within Bankwest and juggling cash flows of the bank itself to ensure that they always have money and to my surprise he said there were times when they almost didn’t have any money!!
6) At a meeting with a Bankwest Business Bankers in Bunbury they told me Bankwest business Bunbury hadn’t lent any money since the start of the GFC and they said something to the effect “and we call ourselves business banking’ referring to how ironic this was.
7) In a discussion with my business banking manager, he said to me I was lucky our business was not in the property division but in the business division of Bankwest as lending in property had stopped. Bankwest was trying to lose customers in the property area.
8) The manager of my local business branch, Kieron Gubbons, took stress leave, I was later told by another Bankwest manager that this was a result of what was going on at the time as it turns out the problems were widespread. He later suddenly departed and is now working elsewhere.
9) A new manager was appointed. In discussions with this manager I told him how frustrating it had become dealing with Bankwest and the looked at me and said sincerely “I am sorry”. He left Bankwest a few months later.
10) One of the Bankwest manager’s assistants, Daniel Smith, was transferred from Bankwest business to credit and asset management and he told me sincerely this was a good career move as credit and asset management was the growth area in Bankwest!!!
This three day senate hearing will scratch the surface. I believe I am one of only 5 individuals giving evidence, the rest are banks, regulatory bodies and institutions. Of the 140 submissions received about 80% relate to Bankwest. Of these some could be discounted but the bulk raise serious issues. There is something seriously not right with the regulatory framework and the system appears to be being exploited particularly by Bankwest and certain sectors of the receivership and legal fraternity.
It’s a ridiculous situation where the heads of our Banks are paid salaries many times that of the Prime Minister, Some earn over $7m a year!! They don’t have their capital at risk, and they get government backed guarantees. We need a strong Banking sector but our Banks are amongst some of the most profitable in the world and protected it seems by an unfair regulatory regime. Other industries don’t have this situation why should Banks be favoured.
Bankwest has tried to hide what has happened, spending millions on its “Happy Banking Campaign” and trying to silence or discredit anyone who tells the truth. In our case and numerous others they have sent companies into receivership and consumed the equity in those companies with their excessive penalty fees, legal fees and receiver’s fees, it’s a feeding frenzy under a cloak of legal protection and in an environment where the regulator is powerless to act.
Summary:
I believe there is a need to establish an independent inquiry or Royal Commission to investigate these issues and to make recommendations. Charges may need to be brought against individuals.
If an inquiry uncovers corrupt and illegal behavior by those involved compensation should be paid to those whose livelihoods have been destroyed.
in 2011 when we encountered dishonesty with the Bankwest appointed managers of our business we took it to the media and a front page story titled "BastardWest" was published in the Fremantle Herald. That article started an avalanche of calls from others in similar situations with Bankwest and other banks and subsequent stories were published in other newspapers both here in Western Australia and nationally. I was asked to appear on television and radio segments explaining what we encountered. The media outlets involved often told us that both Bankwest and the managers they appointed threatened them with legal action if the articles were published. We were telling the truth and had documents to prove it... you can't be sued for defamation if you are telling the truth so the threats were idle. Commonwealth Banks Euan Robertson and Challengers Brian Benari have both had lawyers issue letters threatening legal action unless I stop telling this story and Challenger applied to an international court to have a website address linked to this information removed but their appeal was dismissed.
As a result of the media publicity I was asked by others affected by Bankwest to help. My lawyers told me it was impossible to win against a Bank as they are so powerful and will use all their huge resources against you. Bankwest to this day refuse to authorize the release of legal documents that my company paid over $400,000 for. They just stone wall you knowing the regulators are powerless. The lawyers told me that the system is broken and that Bank appointed managers are part of, and I quote word for word: "The most corrupt industry in town".
I had previously been an active member of the Liberal party for over 10 years so I decided to contact Liberal party politicians for help. A group of about 20 others with similar issues with Bankwest also started to lobby politicians for action to clean up this industry and to try to get compensation. As a result of our lobbying and with the help of politicians from Nationals, Labor and the Greens as well we eventually got approved a Senate Inquiry into the Banking sector in 2012. (link to video extracts of my evidence at the top of this page).
The 2012 Senate Inquiry concluded there were serious problems and a subsequent Senate Inquiry was ordered into the effectiveness of the regular ASIC. That inquiry was held in 2014.
After the ASIC Inquiry I was approached by the Western Australian Rural Action Movement (RAM) to speak at meetings of farmers who had experienced similar dishonesty at the hands of the Banks. I gave addresses to farmers meetings in the wheat-belt and in Carnarvon and met many more with stories like mine. It was after my address to a farmer group at Carnarvon that a lady came up to me to tell her story, she had small bandages on her arms and was very pale. I asked if she was OK and she told me she had just been discharged from hospital. She had been admitted in a state of stress as her husband had just committed suicide over what the Bank was doing to their farming business!! She went on to tell me she had two small children that she had left with a friend to allow her to come to our meeting and that the children were crying when she left thinking she might commit suicide as well. From what she told me they had been very unfairly treated by the Bank involved. I left that meeting thinking this issue is not just about our small group and me getting compensation... That meeting motivated me to do as much as I possibly could to change the system.
Our group continued to lobby for change and we eventually got a Parliamentary Joint Committee (PJC) Inquiry into Banking in 2015-2016. The inquiry was lead by Liberal member of parliament Philip Ruddock. Nationals Senator John Williams was also involved. I had met Williams at the 2012 Senate Inquiry and he was on to it having received hundreds of similar stories. The organizers of that Inquiry were looking for farmers affected by other Banks. I called the president of the WA Rural Action Movement and he gave me some names. I called one of them, a Mr Rodney Culleton, and arranged to meet him. He told me his story with ANZ managers and I said he should write a submission and appear at the committee hearings.
The 2015-16 PJC Inquiry hearings were held in Sydney and Rodney Culleton attended and gave evidence. At lunch break I got the lift down for a coffee and a red headed lady got in and stood next t me. I asked if she was a farmer and where she was from. She said she was just there to observe, so we struck up a conversation. After the hearings I asked her to join a group of us for a drink to discuss the day. That lady was PAULINE HANSON. Pauline told me she was re- entering politics and believed she would do well at the upcoming federal elections. She said she couldn't believe the stories she was hearing and if elected she would try to do something about it. Rodney Culleton also Met Pauline Hanson.
As a result of these meetings Rod Culleton stood as a Senate candidate for One Nation in WA and got in. Rod asked me to come and work with him on the banking issues which I then did. It was a paid position as an adviser to a Senator, a position where I could really start to make a difference. One Nation held the balance of power on the cross-bench and were in a very powerful position. Turnbull was trying to get legislation through and Culleton and Pauline negotiated the setting up of a One Nation chaired Senate Inquiry into Rural Lending in 2016-17.
Pauline Hanson and the Nationals were actually doing something to clean up the Banks. I continued to appeal to key Liberals for help but they refused. In protest I helped convince Pauline Hanson to run a West Australian election campaign in 2017, I ran the electoral office in Perth. The Liberals faced one of their biggest ever wipe-outs and One Nation got three upper house members elected.
Culleton lost his position as Senator due to bankruptcy in early 2017 and I subsequently worked for his successor Senator Peter Georgiou. I finally was working "on the inside" and had access to other politicians and the resources of Parliament to help expose what was happening.
Commonwealth Bank had a full-time lobbyist Euan Robertson working at Parliament House. At one briefing Euan was trying to lobby for the Banks, I spoke up and asked what about all the misconduct within the Banks. Euan then told the meeting that it was a conflict of interest me working as an adviser and then went on to try to stare me down !! I did not blink, and he eventually had to look away. Other Senators noticed and came up to me after the meeting saying don't be bullied by this thug and to keep up the good work. Robertson is one of the few that are aware of whats gone on but tries to cover it up, in my opinion he should be in jail.
In 2017 as a result of continuing stories of Bank misconduct and of the evidence given at all these inquiries pressure was building to Turnbull to hold a Banking Royal Commission, but he just refused. The cross-bench and Labor were now in favor but Turnbull and key Senators such as Cormann and Cash just wouldn't budge. They said they had everything under control and that the regulators were doing a good job, which was far from the truth. Meanwhile the One Nation lead inquiry into Rural Lending was throwing up more horror stories for all to hear. As well as One Nation Senators, other parties had politicians at the hearings and Nationals Senators Williams and O'Sullivan became strong supporters of a Bank Royal Commission.
Polling of the Liberal party continued to decline, Turnbull had become the captain of a sinking ship but still refused to budge on the Royal Commission. It's my belief that the Banks are such big doners to the Liberals that they didn't want to act against the Banks. At a meeting Senator Georgiou and I had with the minister for small business, Liberal Kelly O'Dwyer, over increasing compensation to bank customers in cases of misconduct: O'Dwyer told us both "the Banks would never agree to that". But it's the Government who make the rules not the banks! Clearly O'Dwyer, an ex-Bank employee, was in the pocket of the Banks. I found out later that one of the big four Banks had made very large donations at a Liberal fund raising function hosted by O'Dwyer.
(Footnote 18 Jan 2019 O'Dwyer resigned, I believe she saw the writing on the wall for the Liberals, they are better off without her).
By late 2017 it was crystal clear a Royal Commission was needed as a result of further Bank scandals and the concluding Senate Inquiry.
In the last week of November 2017 I started coming into Parliament House early and distributing to politicians Bankwests "Sink Boots into Customer" memo (see another page of this website) along with information on why a Royal Commission was needed. DOC56 I'm not that religious but early one morning that week I met a clergyman in the corridors of Parliament House and I asked him if he was going to a prayer service there... He invited me to attend so I did. There were some key politicians at the prayer meeting and I felt a bit out of place, but I was welcomed, I was asked to do the reading and join in the prayers. After the meeting the politicians told the minister they were saddened by the state of politics in Australia and at their own parties, they talked about the need for a Banking Royal Commission. This was a Eureka moment for me. I can't say what some told me over a coffee afterwards but the Royal Commission was announced the next day!!!
Turnbull had to do it , he would have lost control of the party room otherwise. Turnbull has since been dumped but the Liberals still just don't get it over matters like this. Nearly everyone else has called for the Banking Royal Commissions terms of reference to be extended to include the Banks appointed receiver managers, one of the greatest areas of misconduct. The Liberals could do this with the stroke of a pen, but they refuse. Labor have done much better and have said that they will force Banks to compensate all wronged customers if elected. News release at: LINK
This story isn't over yet! Liberals now face one of the biggest wipe-outs in Australian history unless they change. I hope they do but doubt they will as they are so beholden to the Banks. If they don't change then Labor deserve to win as they have committed to continue to clean up the misconduct.
My work with One Nation on helping to get the Banking Royal Commission is done. I resigned as an adviser in June 2018 but I am still working with others to bring about change. Everyone told us when we started that we would never get a Banking Royal Commission... But we did!!
Below is some more detailed information on my case from my 2012 Senate Inquiry submission:
Bankwest managers caused losses LINK
I have read many of the submissions to this Inquiry and my case is one of the many involving Bankwest. My motivation to appear before this committee is not just in my interests but in the interests of the many hundreds of Australian families and businesses that have been affected by Bankwests changes in management in the last few years. I have lodged two submissions to this Inquiry being numbers 111 & 124.
If anyone had told me my story with Bankwest several years ago I would not have believed them, the same goes for the bulk of the Bankwest submissions in this Inquiry. I thought this sort of thing could not happen in Australia. I thought we had an honest and well-regulated banking system with checks and balances to keep it honest and regulatory bodies to enforce compliance with the laws. It appears this is not the case and things need fixing and people need to be brought to account.
I can provide documents as proof if required. DOC = document available (click on link to access).
I am married with 4 children and am a self-employed businessman, being a Registered Builder and Hotelier in Western Australia. My business was successful, profitable, had won a number of awards and employed a staff of over 50 plus subcontractors.
My wife and I had built the business up from nothing in 1989 to a successful building and hotel business in 2011. 22 years of hard work and savings. We owned a 50% share in two hotels in WA. The other 50% was owned by a business partner who is a Banker and who holds a senior and highly paid position at another financial institution. Our profitable company rebuilt the Lighthouse Beach Resort in Bunbury which became one of the most popular Hotels in the town.
We were also rebuilding the 120 year old National Hotel in Fremantle & won a heritage award for it.
Our profits were at record levels just before Bankwest receivers were appointed in 2011. We had record forward bookings and the profits in the June 2011 quarter were the best on record, turnover for the year was the best ever and profits were trending upwards. Bankwest dealings were good until 2010. We were told we were model customers. All interest was paid over 8 an year period from 2003 to 2010.
Ian Caulfield, the Chief Executive of Bankwest Business personally inspected the National Hotel in 2010 and personally met me and discussed our business. Bankwest managers and staff were honest and professional. Our problems arose due to dishonest conduct by a small group within Bankwest and their appointed receiver managers who are nothing but white collar thugs.
SUMMARY OF EVENTS:
2007
13th June. Bankwest valuation Lighthouse Hotel $20,000,000 DOC27
2009
24th November. Bankwest valuation $14,750,000 (reduced due to impact of GFC but we are still within lending ratios as we were lowly geared before) DOC28
2010
24th March. Newspaper Article saying Bankwest tightens lending practices. DOC1
19th April. Bankwest advise us new valuations are required at OUR cost being $9,500 (Just FIVE months after the previous valuations). And appoint a different valuer to revalue again.
29th June. Bankwest advise us the new valuation dated 17th June is $11,405,000 being a drop in value of $3,345,000 or 22%. DOC29 In this valuation our buildings valued previously at over $16m were put down at just $3.4m being an 80% reduction. (photos of buildings available) DOC30. This is despite the buildings having had over $4m spent on refurbishments alone in the few years preceding.
The Lighthouse is a 70 room Hotel with two bars, restaurant, several function rooms, indoor heated pool and a large ballroom that we were in the process of rebuilding. It is one of the largest buildings in the city and very well known. To depreciate a large recently refurbished hotel by this amount was extraordinary. Another motel of poorer quality and location was noted in the valuation as comparison to the Lighthouse for valuation purposes. The Lighthouse was given a LOWER valuation on room basis than the inferior property. This was being extremely conservative to the point of negligent. DOC31
29th June. I wrote to Bankwest saying I believe valuation, extremely pessimistic and flawed in its logic with supporting documents to support this. DOC32
1st July. The valuer says he believes his valuation including an 80% discount on buildings that have been refurbished is reasonable. Bankwest refused to disclose valuation instruction. Why did they do that ?
10th August. Bankwest advise us interest rate margins will DOUBLE from 1.25% to 3.07% DOC33
Spring. We decided to sell properties or refinance as it was getting too hard with Bankwest.
2011
27th January. In further discussions with Bankwest they said they will not budge on higher interest rate margin now being charged. They said they had no room to negotiate.
1st February. We got a purchase offer for the Lighthouse at $14m being $2,590,000 or 22% above the Bankwest Valuation which indicates how low the Bankwest Valuation was DOC34 Our Business partner, Brian Benari the CEO of Challenger a Banker himself, decides to match that offer and agrees to buy it on terms matching the other offer for $14m and another valuer values the property at that.
31st March. Bankwest advise us if not get their money back by end May it will get ugly.
6th May. Bankwest advise if arrangements are not made for full repayment of all debt by 31st May default rates of interest at 18% will apply.
23rd May. Our business partner advises he has changed plans to buy despite giving several assurances to Bankwest and others that he would, so I advise Bankwest we will place the property on the market again and sell assets to repay or refinance their debt. Bankwest advises me our business will be placed in CAMS (Credit and asset management). Even though we have the ability to meet all interest payments going forward.
27th May. Bankwest advise that they want all their money back in one lot, no partial repayments!! This made it really hard as the debts were secured over 4 separate properties, I suggested that properties were sold and debt repaid as individual sales made but this proposal was rejected.
30th May. I advise Bankwest that our profits are at record levels DOC54 and request that the 18% is not charged. DOC55
1st June. Bankwest advise me interest charged will rise to 10.81% (from 7.87% DOC35 ) being a 2.94% increase or 37% increase in monthly payments. How can any business stand this!!
22nd June. Bankwest Issued us a Deed of Forbearance: DOC2 Included in the Deed were demands for:
- A confidentiality clause so we could never tell anyone what they were up to.
- A fee of $200,000 payable in advance to extend our facility just five months!!
- 18% penalty interest.
- Us to pay all legal fees for the preparation of the Deed.
- Us to pay for new property valuations.
- Us releasing Bankwest, its employees,officers, advisers and agents from all claims we have against them including a Bar preventing any legal action by us.
The Deed was onerous with one sided clauses. Our advisers recommend that we don’t sign it and we didn't. How many others have been forcibly silenced by Bankwest?
Brian Benari then offered $13.3m being $700,000 less than what he offered just a few months earlier.
22nd June. Bankwest advise us interest rates DOUBLE AGAIN i.e. Quadruple within 6 months to BBSY + 6% DOC36
12th July. Bankwest rejects the $13.3m offer. They want all their money secured over four separate properties back in one lot and no less. We are not allowed to sell the properties separately to discharge the debt in smaller amounts as I had requested. This turns out to be a complete disaster as follows.
18th July. Bankwest appoints Mark Englebert of Taylor Woodings as Receiver Manager.
They charge up to $525 per hour for an accountant and they had three and sometimes four accountants now running the business taking my place. They told me not to work in my business. I complied and left them too it thinking they would do the right thing.
They told me not to work in another business in the town or use my subcontractors there as that would be a conflict of interest with my existing business which they now ran and that they were now being paid from. They told my staff not to “engage” with me and I was told not to talk to the media. Taylor Woodings refused to tell me what was going on in any way. All my profits were taken, I was not able to get any information on what they were doing or how the business was performing… a cone of silence went over the business.
They stopped paying me wages as business owner and manager, they didn’t acknowledge that I and my wife were employees even though we had been for 20 years and had been on payroll and with a family of 4 dependents. I was in an impossible situation with no money, no job, and being told to shut up and keep it a secret. I had a family of four dependent children, I was not allowed to work in the same town as a builder as I was told not to use my independent subcontractors and couldn't get social security because of our assets, which were now all frozen by Bankwest. The income from my business could have paid all Bankwest interest had they not done this.
They told me not to ask questions as doing so adds to the costs of the receivership. My family and some of our staff were in tears of what was happening, it was terrible, these are licensed suited thieves who hijacked the business.
The following three incidents show what Taylor Woodings were like:
12th September. Taylor Woodings advised me that I couldn't conduct a site inspection of the hotel with a prospective purchaser without their consent. Why as this is ridiculous?? DOC3
15th October. A staff member called me to advise that young children were unsupervised in the hotel swimming pool. This is a safety issue. I tried to contact Taylor Woodings but couldn't as it was on the weekend and they wouldn't answer their mobile phones so I phoned hotel to stop this. DOC37
20th October. Taylor Woodings instructed an electrician who had worked for me to do electrical work involving drilling asbestos in a confined space. Another subcontractor told me this was happening. I called Taylor Woodings but I couldn't get through. I then called the electrician to tell him the material he was drilling was asbestos and to stop drilling it as breathing asbestos dust is life threatening. Taylor Woodings then instructed me not to interfere. DOC38
A few weeks later I was issued by Taylor Woodings a threat of a restraining order if I interfered with the business! The two above times are the only times I had intervened since their appointment. They told me I was not even allowed on the property. It’s a Hotel and open to the public but not for me because of Bankwest.
After 10 weeks and intervention from my lawyers Taylor Woodings finally changed their mind and agreed that my wife and I were employees after all. They then sent us termination letters with no reason given. We still had not received any pay or entitlements. We got lawyers further involved and letters were written, still no response.
We took it to Fair Work Australia and the Fair Work Ombudsman. Myself and my wife against two receivers and three lawyers all on $500 to $600 an hour . (5x 550 = $2,750 per hour) which our company pays for against me and my wife!!
1st November. Taylor Woodings lodged forms at Fair Work Australia justifying our termination and their appointment. The information Taylor Woodings gave contained statements that were blatant lies DOC39
What can you do when a Bankwest appointed Administrator fabricates evidence to justify terminating your employment to justify installing their employees at a cost that we find later is $110,000 a month? I believe this is outrageous and borders on criminal behaviour.
11th November. I wrote to Bankwest protesting and outlining the lies and requesting a meeting and answers.
NOTE: No answers to the allegations were ever given. They cannot support the SERIOUS FALSE and MISLEADING ALLEGATIONS made. DOC4
14th November. I sent a letter to Taylor Woodings saying sacking me and my wife for no reason is indefensible.
21 November. ASIC advise me they will take no action on misconduct by Taylor Woodings but suggest I contact my legal adviser and use civil remedies. DOC5
30th November. Taylor Woodings offer a payout if I shut up over what’s happened and sign a Deed including a confidentiality agreement. By this time we were desperate, I had a family of four dependent children, we couldn’t get money from anywhere so we signed as we had no other option.
20th December. Taylor Woodings paid us out $18,300 just before Christmas. Even that was drawn out with them initially refusing to pay it all until we got lawyers involved at further cost to ourselves.
2012
2nd February. ASIC Vaughan Groves advises is that our concerns are outside the ASIC charter but advises us there are legal avenues against Bankwest and Taylor Woodings.
14th February. Federal Labor Member for Fremantle wrote directly to Bankwest requesting transparency. This request was denied!! DOC6
23rd March. Our advisers inform us that the conduct of the Banker involved, Brian Benari of Challenger, is fraudulent, negligent, misleading and deceptive and in breach of fiduciary obligation. This is raised with Bankwest, Taylor Woodings but this advice was ignored. This conduct is attributed to a very senior banker but no action was being taken. DOC26
28th March. Our Lawyers request release of information from Taylor Woodings on Brian Benari's dealings with the receivers. DOC26.1 This request has been denied which itself raises serious concerns of the legality of their actions. Our lawyers also write to the lawyers Bankwest are now using on their side against me being the same lawyers the Bankwest receiver / managers are using "on my behalf" and who I am paying for (which is in itself a conflict of interest). They advise Bankwest of concerns over flaws in the receivership and of mismanagement of the process. DOC26.2
Numerous letters were written requesting information on the management of my company and the receivership, almost all were denied with no reason. They told me my questions are adding to cost of the receivership!!!
Sales Process LIGHTHOUSE BEACH RESORT BUNBURY
Six weeks after Taylor Woodings were appointed the Lighthouse went on the market.
No price. Expressions of interest only.
We offered $ 13.3m subject to sale as a first bid.
I was told they would not accept a subject sale.
I approached several others to form a syndicate to buy it and one group were preparing to put an offer in for $14m but were told not to by the selling agents. (NOTE This is now in 2018-19 the subject of an inquiry by the Australian Small Business and Family Enterprise Ombudsman) LINK
I requested to be told what was going on and had it sold or not?
The selling agents said Taylor Woodings had instructed them it had sold but in a meeting I then requested with Bankwest Taylor Woodings admitted it hadn’t actually sold! So because of my inquiries it eventually went back on the market by which time the syndicate that was interested had brought elsewhere. I was then told any offer I made had to be higher than $12m to be in the running.
My finance broker requested up to date financials to assist with funding. This request was refused by Taylor Woodings. WHY !!
Meanwhile in the mist of all this secrecy and deception another shareholder in the property and Banker Brian Benari negotiated with Taylor Woodings without our knowledge to buy it for $9.5m !! ($4.5m down from his $14m offer just a few months before) We have been advised this conduct is illegal.
I found out afterwards that while this was happening Challenger Financial, with CEO Benari, was awarding more receivership work to Taylor Woodings. This perhaps explains why they were dealing with Benari while at the same time keeping me in the dark over their conduct.
NATIONAL HOTEL FREMANTLE DOC7 PHOTO
Valued at $7m
The selling agents had an interested party in half share at $3.5m 1st February 2011.
Agents advised us it was a “complete and utter waste of time to sell without cost to complete calculated”
Taylor Woodings sacked me and decided do it that themselves. They spent 20 weeks saying they were getting a costs to complete estimate, a job I could have done if I'd been allowed access to the documents they took. I then found out they had done nothing, just wasted 20 weeks. They then put it on the market anyway just before Christmas and advertised it over just 3 weeks with no price. They ignored the advice from the selling agents and Bankwest was fully aware of this but just sat and watched.
We placed an offer subject to sale.
Selling agents tell me my offer needs to be over $5m cash!!
They will not accept a subject sale offer.
I had a JV partner who is interested and keen.
I repeatedly ask the agents, our business partner, Bankwest and Taylor Woodings what’s happening but they refuse to tell us. Our professional advisers are involved and they can’t believe how corrupt and underhanded it all seems.
I find out later it’s sold for $3.6m, about half its value, to foreign Interests, but apparently not unconditionally. Our lawyers further get involved and we offer $3.8m to try to salvage it which they refuse and let it go… A complete commercial disaster.
Bankwest managers have undersold two assets and charged us over $1.3m in their fees (not including sales agents fees) for doing so.
17th April. Legal pressure on Taylor Woodings. We demand documents taken by Taylor Woodings without legal jurisdiction returned (Which may be interpreted by some as another word for STOLEN but I have been threatened by Taylor Woodings with legal action if I discuss this). They eventually return seven archive boxes of documents they had no right to take including documents from our personal superannuation.
18th April. Taylor Woodings threatens to sue us if we disclose their activities to the media.
10th May. Bankwest advise us that Taylor Woodings do not act for Bankwest and that any complaints over their behaviour should be directed to Taylor Woodings. Bankwest are now charging us 18.81% on their fees now being charged to a new overdraft account DOC9 and they are now calling on us for the shortfall. It’s almost criminal. The interest rate was 7.87% previously. DOC8
8th June. For the first time since their appointment, Taylor Woodings advises us of their costs which total $1,055,682 for 9 1/2 months work. This works out at $111,000 a month or $5,500 a day!! Their fees EXCEED the income that the company has made. Just unbelievable and cannot be justified. DOC10
9th June. I request a justification of the fees.
11th June Bankwests appointed Taylor Woodings advise their fees and costs, which our company paid, (totalling $1,055,682 for 91/2 months) “are subject to legal and professional privilege and on that basis are documents to which we are not entitled” DOC11
14th June. Financial Ombudsman Service advises us they cannot act for reasons given in my submission 124 being:
- Receivers’ permission not granted.
- Receivers not under their service.
- Losses exceed $500k.
- They cannot compel Bankwest to act.
I have asked Bankwest and Taylor Woodings to respond to my submissions to this inquiry but they have not done so to date.
4.35pm YESTERDAY (the day before I gave this submission at the Senate Inquiry in Canberra) Taylor Woodings advise I should seek advice before releasing some of the information above as they believe it should be kept confidential Document available as proof DOC20
SUMMARY:
Bankwest artificially devalued our business, doubled then quadrupled their interest rate margins.
Then demanded all their money back in one sum making sales or refinancing virtually impossible.
We were forced to sell and the receivers gouged the business lined their pockets. It’s a disgrace.
Our losses due to the actions of Taylor Woodings and Bankwest are now over $10m.
Bankwest and Taylor Woodings still REFUSE to disclose certain information requested WHY??
Regulatory Agencies ASIC, FOS are powerless to act.
Appeals from us, our lawyers and politicians for transparency have been ignored.
Where can we turn? Banking seems unregulated and out of control.
5th August Bankwest submission to this Inquiry (number 80) contains a number of statements that are not true DOC
- Bankwest has profited from our situation by quadrupling margins on our loans, and then charging 18% interest on their excess fees and the receivers fees.
- CBA profits by claw-back provisions on sale from parent company.
- It appears Bankwest did stop lending and took orchestrated approach to customers (see also newspaper article dated 24th March 2010).
- The actions of receivers are secretive, expensive and not in the best interest of the company.
- Valuation instructions are secret. Why? What have they to hide?
- FOS is often powerless to act.
My case is FAR from Isolated. A formal INDEPENDENT (Non-Bank based) investigation or ROYAL COMMISSION is needed.
Where there is smoke there is fire.
Why did Bankwest try to stop this Inquiry?
Why are they on the defensive and trying to stop further investigations now??
Other issues
1) Massive transfer of wealth from a productive entrepreneur to accountants who act in an unregulated and seemingly corrupt environment.
2) In my opinion it’s grossly unfair and verges on corrupt criminal behavior by various parties involved.
3) I am just one of hundreds in similar position according to government reports.
4) Bankwest book clearing. See Newspaper Article 24th March 2010. DOC1. I have been told Bankwest was insolvent and that RBA bailed it out. We did not know this at time and couldn’t understand why they had become extraordinarily hard to deal with.
5) At a meeting with an employee from Bankwest Treasury I said it must be interesting working within Bankwest and juggling cash flows of the bank itself to ensure that they always have money and to my surprise he said there were times when they almost didn’t have any money!!
6) At a meeting with a Bankwest Business Bankers in Bunbury they told me Bankwest business Bunbury hadn’t lent any money since the start of the GFC and they said something to the effect “and we call ourselves business banking’ referring to how ironic this was.
7) In a discussion with my business banking manager, he said to me I was lucky our business was not in the property division but in the business division of Bankwest as lending in property had stopped. Bankwest was trying to lose customers in the property area.
8) The manager of my local business branch, Kieron Gubbons, took stress leave, I was later told by another Bankwest manager that this was a result of what was going on at the time as it turns out the problems were widespread. He later suddenly departed and is now working elsewhere.
9) A new manager was appointed. In discussions with this manager I told him how frustrating it had become dealing with Bankwest and the looked at me and said sincerely “I am sorry”. He left Bankwest a few months later.
10) One of the Bankwest manager’s assistants, Daniel Smith, was transferred from Bankwest business to credit and asset management and he told me sincerely this was a good career move as credit and asset management was the growth area in Bankwest!!!
This three day senate hearing will scratch the surface. I believe I am one of only 5 individuals giving evidence, the rest are banks, regulatory bodies and institutions. Of the 140 submissions received about 80% relate to Bankwest. Of these some could be discounted but the bulk raise serious issues. There is something seriously not right with the regulatory framework and the system appears to be being exploited particularly by Bankwest and certain sectors of the receivership and legal fraternity.
It’s a ridiculous situation where the heads of our Banks are paid salaries many times that of the Prime Minister, Some earn over $7m a year!! They don’t have their capital at risk, and they get government backed guarantees. We need a strong Banking sector but our Banks are amongst some of the most profitable in the world and protected it seems by an unfair regulatory regime. Other industries don’t have this situation why should Banks be favoured.
Bankwest has tried to hide what has happened, spending millions on its “Happy Banking Campaign” and trying to silence or discredit anyone who tells the truth. In our case and numerous others they have sent companies into receivership and consumed the equity in those companies with their excessive penalty fees, legal fees and receiver’s fees, it’s a feeding frenzy under a cloak of legal protection and in an environment where the regulator is powerless to act.
Summary:
I believe there is a need to establish an independent inquiry or Royal Commission to investigate these issues and to make recommendations. Charges may need to be brought against individuals.
If an inquiry uncovers corrupt and illegal behavior by those involved compensation should be paid to those whose livelihoods have been destroyed.